[%wUKN%] 
Research by PIB
Underperform – TP of MYR 0.95

“Dragged By Lower Sales” 

Chin Well Holdings (Chin Well) reported another sequentially stronger 3QFY24 net profit of RM2.5m (+885.3% QoQ). However, cumulative 9MFY24 net profit of RM5.3m (-84.6% YoY) was still below both our and consensus expectations, accounting for only 33.4% and 30.6% of full year estimates, respectively. The discrepancy was largely due to slower than expected demand recovery while price competition from China continues to weigh on the average selling price (ASP). We cut our FY24F earnings by 32% to factor in lower sales from the Fasteners division.However, as we rollover our valuation to CY25F EPS based on 7x PER, our TP is revised to RM0.95. We maintain our Underperform call on Chin Well. No dividend was declared for the quarter.

Analyst(s):
Denny Oh
Oh.BoonYeow [%kKpF%].[%DzGF%]

$KLSE-CHINWEL 
Research by PIB
Underperform – TP of MYR 0.95

“Dragged By Lower Sales” 

Chin Well Holdings (Chin Well) reported another sequentially stronger 3QFY24 net profit of RM2.5m (+885.3% QoQ). However, cumulative 9MFY24 net profit of RM5.3m (-84.6% YoY) was still below both our and consensus expectations, accounting for only 33.4% and 30.6% of full year estimates, respectively. The discrepancy was largely due to slower than expected demand recovery while price competition from China continues to weigh on the average selling price (ASP). We cut our FY24F earnings by 32% to factor in lower sales from the Fasteners division.However, as we rollover our valuation to CY25F EPS based on 7x PER, our TP is revised to RM0.95. We maintain our Underperform call on Chin Well. No dividend was declared for the quarter.

Analyst(s):
Denny Oh
Oh.BoonYeow @publicinvestbank.com.my

$CHINWEL / 5007 (CHIN WELL HOLDINGS BERHAD)